After extending the refinery, the Saudi Aramco South Korean subsidiary S-Oil Corporation (S-Oil) is considering to build the phase II of its second petrochemical complex on its existing site of Ulsan in Shaheen Province, South Korea.
The project, called Phase II, will require an investment of $4.5 billion capital expenditure. S-Oil is planning to add a mixed cracker to produce ethylene and polyethylene.
The new facilities will be built on a 400,000 square meters (m2) land S-OIL purchased from Hyundai Heavy Industries (HHI) near its Ulsan Refinery.
The goal is to create a mega-scale single location plant and secure higher economics and operational efficiency, if realized.
The steam cracker will produce ethylene and other basic petrochemicals from naphtha and off-gas burned as fuel in the refinery. Thus giving the company an added advantage over feedstock sourcing and cost competitiveness.
Olefin downstream facilities will produce an increased volume of high value petrochemical products including polyethylene (PE) and polypropylene (PP).
The mixed feed cracker should have a size of 1,500,000 tons per year (t/y).
S-Oil is currently running the pre-front end engineering and design (pre-FEED) and should award the FEED contract in 2019.
S-Oil should sanction the engineering, procurement and construction (EPC) contract in 2021, followed by the final investment decision (FID). This decision comes in-line with S-Oil strategic Vision 2025 in response to US shale gas-boosted petrochemical industry.
— August 2019 —
S-Oil named the Phase II petrochemical project as Steam Cracker & olefin Downstream (SC&D), located in Ulsan, Shaheen province.
Then S-Oil selected Chevron Lummus Global (CLG) and McDermott to provide project technologies and licenses.
The project should move in EPC stage in 2021 and may be split in multiple packages in respect with its size.
— December 2021 —
After a stand-by period because of the first Covid waves, S-oil is resuming the work for this mixed-feed cracker.
The FEED moving on again and the final investment decision (FID) now expected on second half 2022.
— November 2022 —
S-Oil awarded the EPC contract to a consortium led by Hyundai Engineering & Construction, with Hyundai Engineering Company and Lotte Engineering & Construction.
S-Oil took the FID for $7 billion, which should transform crude oil into 1.8 million t/y of petrochemicals feedstock.
The petrochemical complex should include extend existing production by 2026, including:
– 580,000 t/y of ethylene
– 770,000 t/y of propylene
– 200,000 t/y of butadiene (BD)
– 280,000 t/y of benzene
– 880,000 t/y linear low density polyethylene (LLDPE) unit
– 440,000 t/y high density polyethylene (HDPE) plant
— March 2023 —
S-Oil and Aramco assisted the groundbreaking ceremony.
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